VAT Refund in Armenia: Who Is Eligible and How to Apply

VAT Refund in Armenia: Who Is Eligible and How to Apply
  • 08/04/2025

VAT Refund in Armenia: Who Is Eligible and How to Apply

Value Added Tax (VAT) in Armenia is 20% of the transaction value, and in many cases, businesses or individuals may be eligible for a VAT refund.
In this article, we’ll clearly explain:

  • Who can claim a VAT refund,

  • Under what conditions,

  • And how the application process works.

What is VAT?

VAT (Value Added Tax) is applied to nearly all goods and services sold in Armenia. Taxpayers registered as VAT payers are required to submit monthly reports and pay the due tax.

However, in certain cases, overpaid or excess VAT can be refunded.

 Who is Eligible for a VAT Refund?

Here are the main scenarios where an entity may qualify for a VAT refund:

1. Exporting Companies

If you export goods or services, the transaction is exempt from VAT. However, you may claim a refund on the VAT paid for goods and services purchased from local suppliers.

📎 Example: If you purchase raw materials domestically with VAT and then export the final product, you can request a refund of the VAT paid.

2. Long-Term Investments

In the case of investment projects (e.g., building a new production facility), it is possible that:

  • Input VAT exceeds output VAT,

  • The difference accumulates and becomes refundable.

3. Overpayment or Miscalculation

If you have accidentally overpaid VAT due to a miscalculation or accounting error, you can apply for a refund from the tax authority (SRC).

4. Personal Imports (for Individuals), under Legal Exceptions

There are special circumstances under which VAT can be refunded for individuals—for example:

  • Tax-Free shopping for tourists,

  • Imports under international or donor-funded projects.

 How to Apply for a VAT Refund

Here is a step-by-step guide to the VAT refund process:

Step 1: Make Sure You’re Eligible

  • Verify that your export is properly documented

  • Ensure your input/output VAT calculations are accurate

  • Prepare all necessary documentation to support your claim

Step 2: Submit an Application to the Tax Authority

The application is submitted electronically through the efiling.taxservice.am platform.

Step 3: Go Through the Review Process

The State Revenue Committee (SRC) may request additional documentation or conduct an audit to verify the validity of the refund claim.

Step 4: Receive the Refund

If the application is approved, the refund is processed within 30–60 days.

 Important Considerations

  • All tax-related documentation must be accurate and complete.

  • Inspections or audits may occur, especially for large refund amounts.

  • If you have no prior experience with such processes, it’s advisable to consult a professional accountant or tax advisor.

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